§ 45. Extensions and additional lines. a. Whenever the board of
transportation shall determine that the public interests so require, it
may with the approval of the board of estimate and the mayor, without
advertising for proposals, but only after a public hearing under section
thirty-four of this chapter, enter into a contract with the person
owning, operating or agreeing to operate, any existing railroad for the
construction, equipment, maintenance and operation, or for the
equipment, maintenance and operation of any additional or proposed
railroad to be owned by the city for which necessary consents as
provided in section twenty-one of this chapter shall have been obtained,
provided that such proposed railroad shall be operated in conjunction
with such existing railroad for a single fare. Such contract for the
equipment, maintenance and operation of such road or any portion thereof
may be made and entered into before consents shall have been obtained
therefor as provided in section twenty-one of this chapter. In such case
such contract for equipment, maintenance and operation of such road or
any portion thereof shall be upon condition that such contract shall not
become operative or go into effect as to such road or such portion
thereof unless and until the city shall acquire the right to construct
such road or portion thereof by obtaining such consents.

b. Such contract for construction, equipment, maintenance and
operation or for equipment, maintenance and operation may be made in
either of the two following ways:

1. If such existing railroad be wholly or in part within the limits of
the city, such contract may be made under and pursuant to the provisions
of sections thirty-one, forty, and forty-two, so far as such sections
shall be applicable, with the railroad corporation owning or actually
operating or agreeing to operate such existing railroad, but the term
for equipment, maintenance and operation of such proposed road, as
specified in such contract, pursuant to such sections, shall not be for
a period longer than the unexpired term of the franchise or contract for
the maintenance and operation of such existing railroad and any renewals
provided for in such franchise or contract.

2. If such existing railroad be a rapid transit railroad constructed
wholly or in part at the public expense under the provisions of the
rapid transit act or this chapter and wholly or in part in operation
such contract may be made with the person having the contract for the
construction and operation of such existing rapid transit railroad by
the terms of which such proposed rapid transit railroad if not
constructed or to be constructed by the board of transportation under
separate construction contracts shall be constructed as extra work under
the terms of such existing contract either without expense to the city
or for such sum of money or such proportion of the actual cost thereof
as may be agreed upon to be paid by such city for or toward the
construction thereof, the railroad when so completed as extra work to be
subject to the terms and conditions of such original contract except so
far as shall be otherwise specified and agreed.

c. Every such contract for such construction, equipment, maintenance
and operation or for such equipment, maintenance and operation of such
proposed railroad made in either of the foregoing specified ways, shall
also make provision that the city, upon giving a specified notice, may
terminate the contract for equipment, maintenance and operation of any
such proposed railroad as to all and if deemed advisable as to any
specified portion thereof at any time after the expiration of ten years
from the date when operation of any part of such proposed railroad or of
such specified portion thereof shall actually begin, but such right of
termination of any such contract shall be upon condition as follows:

1. If the title to the equipment of such proposed railroad shall not
be vested in the city then that the equipment of the proposed railroad
or portion thereof suitable to and used for the purposes of such
railroad as apportioned pursuant to the contract, shall be purchased and
taken by the city at an amount which shall be ascertained as provided in
the contract, but which shall not be greater than the actual cost
thereof, plus fifteen per centum thereof, and such equipment, upon such
termination of such contract, shall become and be the property of the
city on paying to the contractor such amount. In case the title to the
equipment of such proposed railroad shall be vested in the city then
that the city shall pay to the contractor an amount for his investment
in the equipment of such proposed railroad, or portion thereof, which
shall not exceed the actual cost to the contractor of equipment of such
railroad or portion, plus fifteen per centum thereof, and shall decrease
under provisions of the contract as the term thereof continues so that
at the end of the full term of the contract no such amount shall be paid
except that if additional equipment shall be required and supplied after
the railroad, or portion thereof, shall have been put in operation, and
if the contract shall provide that title to such additional equipment
shall vest in the city when supplied, then the city shall pay an amount
for the investment of the contractor in such additional equipment which
amount shall not exceed the actual cost to the contractor of such
additional equipment plus fifteen percentum thereof and shall diminish
so that at the end of the full term of the contract the city shall be
required to pay for such investment in additional equipment only such
amount as shall be provided in such contract.

2. Upon the further condition if such proposed railroad shall be
constructed wholly or in part at the cost of the contractor that the
city shall also pay to the contractor an amount for his investment in
the construction of such proposed road or portion thereof, which shall
not exceed the actual cost to the contractor of constructing such road
or portion, plus fifteen per centum thereof, and shall decrease under
provisions of the contract as the term thereof continues so that at the
end of the full term of the contract no such amount shall be paid,
except that if betterments, additions or improvements shall be required
by the board of transportation or approved by such board prior to the
construction thereof and be constructed wholly or in part at the cost of
the contractor, then that the city shall pay an amount for the
investment of the contractor in such betterments, additions or
improvements which shall not exceed the actual cost to the contractor of
constructing such betterments, additions or improvements plus fifteen
per centum thereof and which amount shall diminish so that at the end of
the full term of the contract the city shall be required to pay for such
investment in betterments, additions or improvements only such amount as
shall be provided in the contract.

d. The contract shall provide a method of ascertaining the amount to
be paid for such equipment and for the investment of the contractor in
the construction of such proposed road upon a termination by the city of
such contract and for the equipment of such proposed railroad at the end
of the full term of the contract. The contract may provide for
determining from time to time, in default of agreement, by arbitration
or by the court, a valuation of such investment of the contractor in the
construction of such proposed road and of the equipment or any part or
portion of either thereof for any purpose under such contract. The
contract may provide that the title to the equipment as well as to such
road shall vest in the city from the beginning and that the amount to be
paid by the city for the investment of the contractor in such equipment
shall decrease as the terms of the contract continues so that at the end
of the full term of the contract no amount shall be payable therefor
except for additional equipment as aforesaid. The contract shall provide
that upon the expiration of the term fixed in the contract, the contract
shall end without compensation to the contractor except as provided in
the contract, for betterments, additions or improvements to any such
railroad required to be made or approved by the board of transportation
prior to the construction thereof during the term of any such contract,
and, if the title to the equipment be not vested in the city, for
equipment suitable to and used for the purposes of such contract to the
amount, if any, ascertained as provided in the contract, and that in
such event such equipment shall become the property of the city upon
payment to the contractor of such amount, or, if the title to the
equipment be vested in the city, then an amount for the investment of
the contractor in additional equipment for any such railroad to be
ascertained as provided in the contract.

e. The contract also may include a provision for modification of the
lease or contract for equipment, maintenance and operation of such
existing railroad so that such latter lease or contract may be
terminated by the city upon giving a specified notice at the same time
and in connection with the termination of the contract as to such
proposed railroad, but such right of termination of any such contract as
to such existing railroad shall be upon condition:

1. That the equipment of such railroad suitable to and used for the
purposes of such contract shall be purchased and taken by the city at an
amount which shall be ascertained as provided in the contract, but shall
not be greater than the actual cost thereof plus fifteen per centum
thereof, and such equipment, upon such termination of such contract,
shall become and be the property of the city on paying to the contractor
such amount, or

2. Upon the further condition, if such existing railroad shall have
been constructed wholly or in part at the cost of the contractor, that
the city also shall pay to the contractor or to his assignee in
possession an amount for the investment in the construction of such
existing road which shall not exceed the actual cost to the contractor
of constructing such road plus fifteen per centum thereof, and shall
decrease under the provisions of the contract as the term thereof
continues, so that at the end of the full term of the contract, and of
any renewal thereof contained therein, no such amount shall be paid.

The contract as so modified shall provide a method of ascertaining the
amount to be paid for such equipment and for the investment of the
contractor in the construction of such road upon a termination by the
city of such contract, and for the equipment of such existing railroad
at the end of the full term of the contract. Such contract as so
modified may provide for determining from time to time, in default of
agreement, by arbitration or by the court, a valuation of such
investment of the contractor in the construction of such road and of the
equipment, or any part or portion of either thereof, for any purpose
under such contract. The contract also may provide for assuring that in
case a new contract for equipment, and for maintenance and operation of
such existing railroad, or proposed railroad, is made after such
termination, pursuant to notice, or after the expiration of the full
term of such contract, that the title to and possession of the equipment
so taken and the right to the possession of the railroad so constructed
may be transferred directly to the new contractor upon his paying the
amount so required.